2014 12 01 To: Mr. John Traversy Secretary General Canadian Radio-television and Telecommunications Commission Ottawa, Ontario K1A 0N2 Subject: Part 1 Application – Corus Premium Television Ltd. (Corus) – 2014-1106-6 – Intervention by Bell Media Dear Mr. Traversy, 1. Bell Media is pleased to provide this intervention relating to the above-noted Part 1 application. Corus is seeking to amend the broadcasting licence for its AM radio station CKNW Vancouver operating at 980 AM in order to add an FM rebroadcasting transmitter operating at 99.7 MHz. 2. As outlined in their application, Corus states the addition of its proposed FM transmitter would not represent a new service as the FM transmitter would rebroadcast the programming of CKNW within its existing contours. Consequently, Corus believes that its application is compliant with the Commission's Common Ownership Policy (the Policy). Alternatively, if the Commission considers the proposed FM transmitter does contravene the Policy, then Corus has requested an exception to the Policy. 3. For the reasons outlined below, we oppose Corus' application and requests that the Commission deny the application: - The technical issues impacting CKNW are not unique to the station as all urban AM stations suffer from similar problems; - The addition of an FM rebroadcasting transmitter violates the Policy; - An exception is not warranted; and - Current precedents do not apply. 4. Each of these reasons is explained in detail below. CKNW's Reception Issues Are Not Unique 5. Corus has indicated that the purpose of adding the FM transmitter is to correct coverage deficiencies in downtown Vancouver. In support of their application, they have provided evidence that CKNW's signal in the downtown core is impaired. To remedy these reception issues, Corus has proposed adding a FM transmitter, a so-called "nested FM" in order to improve CKNW's signal. We note that the addition of a nested FM is an uncommon solution to fix signal impairments and consequently, each application must be assessed on its own merits. Bell Media Inc. 299 Queen Street West, Toronto, Ontario M5V 2Z5 Phone 416.384.5155 Fax 613.560.0472 2014 12 01 2 6. We acknowledge that CKNW suffers from signal impairment but it must be recognized that this is not a unique phenomenon to CKNW, but rather it represents an ordinary experience for urban AM stations. In particular, all AM stations in all urban markets suffer from poor quality signals due to lack of building penetration by the signal as well as interference from a variety of electrical sources. 7. In Vancouver, as Corus has noted, the challenge is the densely built downtown core with condominiums, business towers, and hotels. Compounding the structural challenges presented by these buildings is the dramatic effect that mass transit trolley lines have on the ability to receive AM signals. But the difficulty from both of these obstacles is felt by all competitive AM frequencies in the very core of downtown Vancouver and not just CKNW. Key formats such as news and traffic updates on CKWX (New 1130 owned by Rogers); sports programming on CKST and CFTE (TSN 1040 and TSN 1410, owned by Bell Media); Asian ethnic and cultural programming on CHMB (AM 1320 owned by Mainstream Broadcasting); or in CKNW's case, news and information programming on AM 980. All of these signals face varying degrees of impairment in the downtown core. Yet CKNW is better positioned than many AM stations in Vancouver to reach its listeners given that it operates at the lower end of the AM band on 980 kHz. Such frequencies at the lower end of the AM band typically have better penetration throughout downtown areas. 8. The current environment means that the playing field is neutral and no operator has an unfair advantage over the others. We all have apps for smartphones that allow our listeners to tune into their station of choice on their phone, be it in their cars or otherwise. We all push office tuning via our website streams. Both of these avenues provide significant opportunities to listen to stations by mitigating the technical barriers that we are unable to change. 9. Allowing CKNW an opportunity to nest an FM on a frequency that only they can operate on, while having no alternative for the other stations to access would inflict a severe handicap to all stations except for the one allowed to be nested on FM.1 No other broadcaster has this same opportunity due to the channel alignment in the market. There are other frequencies but any of these other options would require the elimination or change of low power operations, or acceptance of interference by other broadcasters in outlying markets. Given this, and as detailed below, we believe that the Commission should examine the situation facing AM stations with a view to providing a comprehensive policy framework that reflects the current challenges facing these stations. 10. Furthermore, CKNW is an extremely successful radio station as demonstrated both by the chart below and by Corus' own acknowledgement that their application is not filed on the basis of financial need. According to Numeris, CKNW is the dominant AM station in the Vancouver market with a 9.6 share of tuning 12+ in Fall 2014, an increase over the same time period in the previous year. CKNW also enjoys the second largest share of tuning amongst all radio stations in Vancouver. Therefore, the AM signal of CKNW is clearly not impacting the station's performance in Vancouver. 1 Corus is proposing to use 99.7 MHz, a second adjacency to their station, CFOX-FM, which operates at 99.3 MHz. As indicated in their supplementary brief, this frequency is not available for use by any other broadcaster without Corus' permission, which they would not provide in any event. 2014 12 01 3 Audiences A12+ Stats Total Market Share % Dayparts Areas Stations FALL 13 WIN 14 SPR 14 SUM 14 FALL 14 CHQMFM 11 12.6 9.5 10.7 10.6 CKNW 9.1 8.3 9 9.7 9.6 CFBTFM 7.1 7.5 7.8 7.4 7.5 CJJRFM 6.8 7.2 7.3 6.7 7.3 CKWX 6.4 5.6 5.9 6.2 7.2 CFMIFM 6.4 6.1 6 7.7 6.1 CJAXFM 5.9 5.4 5.8 6.7 5.9 CKZZFM 6.4 6.1 5.8 4.5 4.8 Vancouver AW (Mo-Su 2a-2a) CKPKFM 2.7 3.2 3.3 4.1 4.3 CTRL CFOXFM 3.6 2.9 3.1 3.9 4.1 CFUNFM 3 3.3 3.5 4 3.8 CHLGFM 1.5 1.4 1.5 2 2.6 CKST 2.8 2.9 2.7 1.6 2 CISL 3.4 2 2.4 2.1 1.8 KWPZFM 0.9 1 1 1 1.2 CHMJ 0.9 0.8 0.7 0.7 0.9 CFTE 0.4 0.3 0.3 0.5 0.2 Corus' Proposed FM Transmitter Violates the Common Ownership Policy 11. The Policy states that, in markets with eight commercial radio stations or more, operating in a particular language, a person may be permitted to own or control as many as two AM stations and two FM stations in that language. In Vancouver, Corus currently owns and operates two FM stations in Vancouver, CFOX-FM and CFMI-FM. With the proposed addition of a FM transmitter to rebroadcast the programming of CKNW, Corus would have three FM stations in Vancouver, in clear violation of the Policy. 12. The Commission examined this identical issue in Broadcasting Decision CRTC 2007-350 (BD 2007-350) and Broadcasting Decision CRTC 2012-307 (BD 2012-307), where Corus had applied for FM rebroadcasting transmitters for CJOB Winnipeg and CHQR-FM Calgary respectively. In that decision, the Commission denied Corus' application and similarly, the Commission should deny Corus' current application for CKNW. An Exception to the Policy is not warranted 13. If the Commission determines that the proposed FM transmitter does constitute a third FM station, we submit that an exception to the Policy is not justified. In Broadcasting Information Bulletin CRTC 2010-341 (BIB 2010-341), the Commission set out its Revised guidelines for the application of the Common Ownership Policy for Radio. In BIB 2010-341, the 2014 12 01 4 Commission noted that rare exceptions to the Policy have been granted where, due to adverse economic circumstances, the survival of radio stations has been in serious doubt. The Commission has also stated that exceptions may be permitted to address severe technical limitations.2 14. Bell Media submits that CKNW is neither experiencing adverse economic circumstances such that its survival is in doubt, nor is it experiencing severe technical limitations. Corus did not provide any financial justification for its proposed nested FM, nor are CKNW's technical limitations severe as all urban AM radio stations experience identical issues to those identified by Corus. In this regard, the Commission's statement in BD 2012-307 is relevant: The Commission acknowledges that the technical issues experienced by CHQR are legitimate. However, the Commission notes that CHQR is not subject to any more interference than other AM stations operating in major urban centers. The Commission is of the view that CHQR's technical limitations do not qualify as severe given that these technical issues are inherent to the operation of all AM stations in major urban markets. Accordingly, the Commission finds that Corus' situation does not meet the severe technical limitations criterion for an exception to the Common Ownership Policy.3 Current precedents are not applicable 15.